Yes you do…”Declaring my Partner’s income when I go bankrupt” is a common question, but only the disposable income after all of his / her personal expenses. Therefore, it might be the case that your partner takes home £1000 per month but has credit card and loan commitments of £400 per month – in this case you would declare them as contributing £600 per month.
We’re often asked why the Insolvency Service needs to know this information when only one party is going bankrupt, but it’s all to do with establishing a profile of the state of a household’s finances. They are not allowed to ask for a partner’s banking details (statements, etc.) without first obtaining a court order, so they accept the information in good faith.
Getting the Income and Expenditure right in a bankruptcy is of paramount importance if you are to avoid receiving a so-called Income Payments Agreement (IPA) and it’s best to speak to someone who knows – like us. The Insolvency Service has made life difficult for people who know nothing about the trade as they have introduced all manner of tempting things for us to claim.
For example, they invite us to claim for perfectly reasonable things like tobacco and alcohol, as well as money that might be spent on lunches at work and socialising. But guess what, these things are not allowed and if you had claimed them in a bid to show no surplus household income, they will be disallowed and included in an IPA. As Insolvency professionals, we know the extent of what may be claimed and for how much, and this makes all the difference. Get it wrong and you will be in a world of pain.
‘Declaring my Partner’s income when I go bankrupt’ is just one of hundreds of questions we’ve answered over the years, but feel free to call us on 01425 600129 if you need to know more or specifically need bankruptcy help.